Tag Archives: Kruger

The government of Newfoundland and Labrador is giving Kruger‘s Corner Brook Pulp and Paper a $90 million loan.

The loan won’t kick in until new contracts are in place for all the union at the mill.

“Corner Brook Pulp and Paper is a key employer and a strong contributor to our economy. The mill is important not only to the west coast, but the entire province. Government has clearly stated that we will provide support only when negotiations for a new contract are concluded for all eight unions at the mill,” said provincial Natural Resources Minister Tom Marshall.

The loan will be used by Kruger to address challenges in the industry.  Marshall said, “This loan will enable Corner Brook Pulp and Paper to become a low cost producer. Our investment will strengthen the company, which has been a long-standing, good corporate citizen in Newfoundland and Labrador. It will also help ensure the long-term security of our integrated sawmill operations which are the backbone of the sawmilling sector.”

The provincial government has invested $58 million in Corner Brook Pulp and Paper from 2004 to 2012 in various projects. This amount does not include Power Purchasing Agreement sales of $65 million which provides a source of revenue for the paper mill.

Read more:
Marshall defends $90-million loan for Corner Brook paper mill (The Telegram)
Corner Brook Pulp and Paper gets $90M government loan (CBC)

Kruger workers who were laid off over the Christmas holidays in Corner Brook, Newfoundland returned to work today.

One of the paper machines was shut down on December 23.  The 15 day shutdown reduced Corner Brook Pulp & Paper’s newsprint output by 4,000 metric tonnes.

110 employees were affected by the downtime.

Read more:
Kruger mill employees return to work (CBC)

One of the two paper machines at Kruger‘s Corner Brook Pulp and Paper mill will be shut down for 15 days.

No. 2 paper machine will be shut down from December 23 until January 7.

The curtailment in production will result in a 4,000 metric tonne reduction in newsprint output.  110 employees will be affected.

The temporary curtailment has been blamed on difficult newsprint market conditions.

Read more:
Mill shutting one paper machine for 15 days (The Telegram)

The electricians at Kruger‘s Corner Brook Pulp and Paper have a new contract.

Communications, Energy and Paperworkers Union of Canada (CEP) Local 96 was the only one of five CEP locals in the mill to reject Kruger’s contract offer in June, along with  Lodge 1567 of the International Association of Machinists and Aerospace Workers (IAMAW).  Both groups wanted more in their contract to retain skilled workers in Corner Brook.

Although specific deals of the new contract are not publicly known, the new contract is believed to contain some specially crafted language designed to try to retain electricians.

Gary Healey, national representative for the Communications, Energy and Paperworkers Union of Canada, said the new contract “addresses the supply problem around tradespeople. It’s a package that addresses retention and, in some small way, makes it a little more attractive for tradesmen who might want to relocate to Corner Brook and work for Corner Brook Pulp and Paper.”

Negotiations between Kruger and IAMAW Lodge 1567 broke off last week.   According to Rick Arsenault, the IAMAW’s national representative from New Brunswick who is trying to hammer out a new deal with the company, the same contract proposal accepted by the electricians was not offered to the machinists, millwrights and welders.

Read more:
Mill electricians have new deal (The Western Star)

Kruger Inc. has announced that the active and retired unionized employees of Corner Brook Pulp and Paper have approved the proposal to apply funding relief measures to their pension plan’s deficit.

These relief measures were essential to the Mill’s ability to compete in the market and will enable the Company to pursue its assessment of the Mill’s long-term viability. The next step will be for the company to present a sustainability plan to its lenders and to the NL government within the coming weeks.

According to the final report issued by independent auditor Brian N. Hillier, the number of objections was the following for each group of members:

Active members (321): 19 objections (5.9%)
Retired members (645): 7 objections (1.1%)

Source: Kruger Inc.

Kruger Inc. has announced that the woodland operations at its Corner Brook mill in Newfoundland and Labrador has  achieved certification under the Forest Stewardship Council® (FSC®) National Boreal Standard.

Issued by QMI-SAI Canada Limited, an FSC-accredited organization, the certificate recognizes that all woodland operations comply with FSC requirements, including management planning, road construction and maintenance, harvesting operations, fibre transportation, silviculture and support activities.

“Achieving FSC National Boreal Standard certification is part of our long-standing commitment to environmental protection and the result of our employees’ dedication to managing and using resources responsibly,” said Pat Tompkins, Woodlands Manager, Corner Brook Pulp and Paper Limited.

FSC standards are among the strictest and most recognized in the global forest industry. Kruger’s Corner Brook Mill obtained this certification after a rigorous auditing process, building on its existing certifications to the ISO Environmental Management and CSA Sustainable Forest Management Standards. The new certificate (license code QMI-FM/COC-001506) covers forest management districts nos. 5, 6, 9, 14, 15 and 16.

In recent years, Kruger Inc. has achieved several FSC certifications, including FSC Chain of Custody (CoC) certification for its Québec paper mills and sawmills (license code FSC-C103971) and for the five Kruger Products tissue mills (license code FSC-C104904), as well as FSC certification for its forest management practices in Québec (license code SW-FM/COC-004672).

Source: Kruger

The province of Newfoundland and Labrador is indicating they are willing to support the Corner Brook Pulp and Paper mill – if all 6 union locals approve new collective agreements, and the mill’s pension plan issues are cleared up.

As it stands right now, 4 of the 6 locals have voted in favour of a new contract with mill owner Kruger.  The 2 skilled trades unions have not yet agreed on a new contract with the employer.

The workers will be voting on the proposal to allow Kruger to have 10 years instead of 5 years to pay back the deficit to their pension plans before August 22.

If those issues are resolved, the province is willing to help, but no details will be released until after August 22.

Both Kruger, and the workers at the mill, have indicated there is a need for infrastructure updates.  Kruger had an excellent track record of investing in the mill, but in recent years, the company’s restricted cash flow has prevented it from making improvements and upgrades.

Premier Kathy Dunderdale has confirmed that the province’s support will not come in the form of an operating subsidy.

Read more:
Government may help with mill upgrades (The Western Star)
N.L. premier says support coming for paper mill if deal is reached (The Canadian Press)

The CEP Locals at Corner Brook Pulp and Paper have voted in favour of Kruger‘s latest contract offer.

CEP Local 96, the electrician’s local, was the only one of the five CEP locals to reject the offer.  Lodge 1567 of the International Association of Machinists and Aerospace Workers also vote against the offer earlier in the week.

The new collective agreement will be effective immediately.

The company will now hold a second vote on the pension plan funding relief measures.  Both the active and retired members of the unionized employees’ Pension Plan will re-vote.  This voting process is expected to be completed by August 22.

Kruger has said that the company will continue to assess the mill’s viability and will continue its efforts to reduce the mill’s operating costs by applying necessary cost-cutting measures.

Read more:
Majority of union members accept reduced wages in hopes of preserving their jobs (The Western Star)
N.L. mill workers OK contract concessions in bid to save plant (The Chronicle Herald)

The first of the union locals at Corner Brook Pulp and Paper to vote on Kruger‘s final offer has voted ‘no’.

Local 1567 of the International Association of Machinists and Aerospace Workers (IAMAW) has said it could not accept the offer.

“This was a very difficult decision for everyone,” local president Ross Edison said. ”The level of concessions and changes to the pension and contract language proved to be unacceptable.”

The IAMAW represents a few dozen employees at the mill. In early February, a dozen of the 50 jobs held by Local 1567′s members were cut by the company.

The other union locals at the mill have until Friday to respond to Kruger’s offer.  The CEP unions are voting today (Thursday) and tomorrow (Friday).

Read more:
Millwrights reject final Kruger offer (CBC)
IAMAW union at CBPP rejects offer from Kruger (The Western Star)

Bruce Randall, President of CEP’s Local 242 in Corner Brook said national president Dave Coles’ comments yesterday were unwanted and may actually harm the sensitive process mill workers are going through this week.

Yesterday Coles urged the workers to accept Kruger’s contract offer when they vote this week.

Randall said he would rather leave that decision to the workers.  He also said he has been trying to talk to Coles for the last 4 months but Coles has not been in communication with him.

“Dave Coles has no credibility anymore — none,” Randell said. “All he’s doing is hurting our cause. We are trying to get a collective agreement here in Corner Brook that people can live with. That is the ultimate goal. We don’t need the criticism. Hopefully, he hasn’t hurt our objective of getting a tentative deal. I say, ‘hopefully,’ because my members are tired of the rhetoric.”

The CEP has encouraged workers at other mills to accept concessions, setting a pattern of collective agreements that Randell said Corner Brook Pulp and Paper’s employees are now expected to go along with without question. Every mill has it’s own factors to consider and Randell said Coles is out of touch when it comes to the situation in Corner Brook.

“If he wants to question my leadership, why doesn’t he pick up the phone and phone me?” asked Randell. “Or, better still, why doesn’t he get on a plane and fly down here and meet face-to-face with the local leadership that he questions, and have a better understanding of what’s going on … Did I get a phone call from Dave Coles? No. Do I need to talk to Dave Coles about certain issues? Yes. And I asked four months ago to get a hold of him.”

The Local Executive are hoping for a deal, but they are not telling their members to rubber stamp the offer in front of them this week.

Workers will be able to pick up their copy of the offer tomorrow.  Meetings and voting will occur on Thursday.

All of the union locals at the mill will vote before Friday.

Sources:
Pressing discussions; Head of Local 242 says CEP national president doing more harm than good (The Western Star)
N.L. mill union leader rebukes national president for urging OK of deal (Cape Breton Post)